It's a hard one this in parts...

Hard to justify a payrise when you've been effectively nationalised for the past year.

Increase in labour costs naturally drives up other costs which is then passed onto Customers who in parts are already on the receiving end of some fairly large fares and will look at other options where they can.

Customer habits are changing and income streams with them. You have to invest (paint jobs, £1 fare promo, commercial tie ups with English Heritage etc etc) to attract Customers otherwise numbers dwindle to those who uses buses out of 'no choice' and then you're off down the job centre.